Bitcoin Utility Grows During The Bear Market

– On-chain analysis is a way of examining transactions over a network in order to gauge the health and utility of that network.
– Transactions conducted within exchanges wallets have been trending lower from the May 2021 peak, indicating that there is less transfer activity taking place within exchanges.
– The total number of deposits and withdrawals to and from exchanges has also decreased, suggesting that people may be less engaged with exchanges overall.
– The number of transactions from all exchanges to derivatives exchanges has also dropped, indicating that derivatives trades are not currently very attractive.
– However, the total number of transactions taking place on the network has actually increased, suggesting that there is high demand for Bitcoin outside of exchanges.
– The HODLing behavior of long-term investors can be gauged by studying UTXO value and age bands. These bands suggest that more investors are holding and accumulating Bitcoin, rather than selling.

 

 

img 0298 Bitcoin Utility Grows During The Bear Market
Bitcoin Utility Grows During The Bear Market 2

Leave a Reply